Fair Trade
1) How The Pattern Works
Regions are often coerced to trade raw commodities like timber and food, even at the expense of local people and ecosystems. This further diminishes local economic diversity and security, which only makes regions more vulnerable to poor terms of trade.
In Bioregional Economies, the terms of trade are mutually beneficial. Producing goods for export does not result in the systematic degradation of natural resources, poor labor practices, or the unnecessary loss of wealth that could otherwise be maintained by the region. Prices reflect true social and ecological costs. Goods and services for trade are value-added, rather than low-priced basic commodities. They should reflect rich regional cultures and characteristic ecosystems, possessing a unique identity and special appeal.
The extent and type of trade should be dictated by long-term economic, social, and environmental benefits, rather than short-term necessity. Trade should enhance the well-being of the bioregion, adding a rich mix of goods and ideas while allowing the bioregion to meet more of its needs locally. This is equally true under scenarios of both rapid globalization and relative economic isolation. In either case, bioregions that are largely self-sufficient will flourish by selling on favorable terms when opportunities present themselves. They will avoid being dependent on massive imports on unfavorable terms.
Likewise, dependence on imports that are produced destructively should be diminished through Green Procurement efforts. Such imports do not reflect Fair Trade. They exploit historical imbalances in rates of development and diminish opportunities for people and ecosystems. Since these imports are being produced unsustainably, it is impossible to depend on them over the long run in any case.
There are a number of Product Labeling schemes which verify the conditions under which products are produced. For instance, Forest Stewardship Council certified timber must be produced without destructive impacts on ecosystems, and profits should benefit the local community. This allows consumers and businesses to promote Fair Trade through purchasing decisions.
The environmental costs of transportation systems used for trade should also be accounted for and appropriately mitigated, perhaps through purchase of carbon emissions credits. Trains and ships are extremely energy efficient compared to trucks and planes. Over time, all transportation systems will make a transition to Renewable Energy.
By building diverse local economies, encourage only those exports which are value-added and healthy reflections of local cultures and ecosystems. Avoid dependence on imports that are produced with destructive consequences to people and ecosystems. Mitigate the environmental impacts of transportation for trade.
2) Stories: Examples of this Pattern in Everyday Life
Susan Jackels helping Nicaraguan Coffee Farmers
Dr. Susan Jackels, a chemistry professor at Seattle University, believes her faith has led her to the coffee farms in Nicaragua to help the Cafeteleros receive a fair price. Seattle University as a Jesuit Catholic University supports her work and service to the Nicaraguan people.
Most of Nicaraguan coffee is produced by small farmers called Cafeteleros. The coffee is already produced organically but can vary in quality. This makes it very hard to sell as gourmet coffee, which receives the fair-trade price. The farmers have a need and Dr. Jackels is able to use her background in chemistry to fill that niche.
Through a partnership with Seattle University, Catholic Relief Services/Nicaragua (CRS/NI), a Nicaraguan agricultural NGO called ADDAC (Association for the Development and Diversification of Agricultural Communities), and the University of Central America Managua, Dr. Jackels has started her work to make a difference. With her husband Charles, who teaches at the University of Washington-Bothell, she began studying the fermentation process of coffee. What they have found is amazing.
In the fermentation process, the coffee develops yeast and lactic acid. Lots of yeast reduces the quality while lactic acid could be the aspect that brings the quality up and with it the fair prices. As far as Dr. Jackels knows she and her husband are the first people doing this type of research even though coffee production has been going on for hundreds of years. More research is needed and the Jackels couple plans on going back to Nicaragua this next winter. They plan on working with different variables and then making recommendations to the Cafeteleros.
Dr. Jackels is quick to add that there exists a tradition here of growing coffee. She wants to blend her research with that of tradition. She says, “We need to be serving them instead of coming in and dominating them. The service and faith part keeps you in the appropriate balance.” Doing otherwise, she adds, could destroy the faith that exists.
So what will be Dr. Jackels results? For the Cafeteleros the price will jump from $40 per 100lb bag to the fair-trade price of $120. Production costs $50 for the Cafeteleros. Therefore, they will move to a fair situation. Equal Exchange already offers some Nicaraguan coffee of the best quality.